HUD Shifts Homelessness Funding Away from Permanent, Proven Solutions
(Nov. 18, 2025) In late October, LeadingAge NY joined the Supportive Housing Network of NY and 200 other organizations in sending a letter urging the NY congressional delegation to protect the U.S. Department of Housing and Urban Development (HUD) Continuum of Care (CoC) program, which has been facing threats to its funding, to practices that impact programs’ ability to operate continuously, and to policies that would limit the amount of permanent supportive housing (PSH) that can be supported through the CoCs.
Unfortunately, the Continuing Resolution (CR) enacted to end the federal government’s historic 43-day shutdown does not include protections for the CoC program, and LeadingAge reported that on Nov. 13th, HUD issued a drastic policy change to the program’s annual funding opportunity by shifting millions of dollars away from PSH units – which support families and older adults experiencing homelessness through permanent, affordable, service-enriched housing options – to transitional housing and other temporary services that are designed to enable a transition to the workforce and can include work training requirements.
Older adult homelessness is the fastest-growing type of homelessness in the U.S., and the shift in federal homelessness priorities is a major step backward for older adults. PSH is widely accepted as an effective approach for addressing homelessness; the move by the Trump administration reflects a targeted change in federal priorities – outlined in an executive order issued in July – away from the Housing First model of addressing homelessness.
Going into 2026, nearly 90% of HUD’s CoC funding was expected to be used for PSH units connected to services needed for housing stability. The new funding requirements instead limit the amount of CoC funds that can be used for PSH to 30%. This funding shift will impact renewing PSH programs, jeopardizing housing for about 170,000 people currently in a PSH unit, according to analyses by Politico.
According to the latest HUD data available, nearly 40% of PSH residents in 2023 were older adults. In addition, LeadingAge members relying on PSH funding, including as part of new developments through the Low-Income Housing Tax Credit as required by certain states, will be directly impacted by the major policy change.
“Cutting support for PSH will harm Americans, including older adults, who are currently served through PSH but will now face homelessness because of the country’s severe lack of affordable housing,” said LeadingAge President and CEO Katie Smith Sloan in a statement in response to HUD’s decision. “The fastest growing demographic of homeless people in the country today are those 55 and older. Because of HUD’s decision, our nonprofit and mission-driven members … will be restricted in their efforts to address the current and future needs of older adults in need of housing. We strongly oppose HUD’s decision.”
Contact: Annalyse Komoroske Denio, akomoroskedenio@leadingageny.org, 518-867-8866